Transcript

00:00:01

>> Americans hoping to get a ride in Ford Motor's crossover vehicle known as the Focus Active are out of luck. The auto company, Friday, pulled plans to start selling the Chinese made car in the US next year because it fears the model could be caught up in the tit for tat tariff spat between the US and China.

00:00:19

With President Trump threatening to impose duties on another $200 billion in Chinese goods. Shares of the Detroit automaker dropped nearly 3% on the announcement. Unlike rival General Motors, which is seeking an exemption for its China made Buick Envision SUV, Ford has decided to roll over and just scrap its US selling plans altogether without even trying to get an exemption.

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Ford would have to raise the price of the crossover to cover the 25% tariff on Chinese made goods, which would make the model much costlier than similar US made competitors of its kind. Earlier this year, Ford said it was dropping unpopular car models in the North American market and ditching plans to import other Focus sedans made in China.

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Friday's move will not result in job losses, the company said, or significantly dampen its US sales. The model, however, will still be built and sold in Europe and China.